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UK grid to pay households for extra electricity use

Financial Times Companies •
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Britain’s grid operator, the National Energy System Operator (Neso), will start paying households and factories to increase electricity use during midday peaks this summer. The scheme aims to soak up surplus generation from the surge in solar and wind output, which has pushed wholesale prices into negative territory. Participants could receive direct significant cash, tariff cuts or other additional incentives for running appliances or charging EVs.

The programme extends Neso’s 2022 demand‑flexibility service, which paid customers to cut consumption when supply was tight. With solar capacity exploding from a handful of megawatts in 2010 to roughly 22 gigawatts today, daylight generation often exceeds transmission demand, forcing the operator to pay wind farms to curtail output. Incentivising demand now costs less than compensating generators to shut down.

Payments will be targeted geographically and sized to market conditions, with factories able to shift heavy‑load processes alongside residential loads. By turning surplus into revenue, Neso hopes to stabilise prices, protect renewable investors and avoid costly curtailments. The approach marks a rare instance of a state‑owned utility directly subsidising consumption to balance the grid.